The explosion in construction of self-storage facilities is being backed by banks hungry for commercial loans. Some market participants fear a glut is in the making and the credits could sour.
The Atlanta bank has financed construction and other activities tied to nursing homes and related facilities mainly in its East Coast markets. It says the timing is good to tap into demand elsewhere in the country.
A bill that would ease Basel III capital requirements on commercial real estate loans could level the playing field between depository and nonbank lenders and spur more construction lending if it passes in the Senate.
Banks could be busy supplying credit to manufacturers, hotels, multifamily developers and other businesses that will be helping residents get their lives back on track after two fierce storms.
New data shows that large commercial banks are increasing their originations of single-family construction loans, but these loans still represent a small percentage of their total assets.